RIYADH: The OPEC Fund for International Development has seen its long-term issuer credit rating raised to AA+ from AA by S&P Global. According to the US-based agency, an this grading signifies very low credit risk and indicates that the issuer has a strong capacity to repay its debts. In its latest report, S&P Global also affirmed its A-1+ short-term issuer rating for the OPEC Fund and assigned a stable outlook, indicating the issuer’s strong capacity to meet its financial commitments, according to a press statement. The OPEC Fund Director-General Abdulhamid Al-Khalifa said: “This rating upgrade confirms the strength of our strategy and the effective delivery of our development mandate.” He added: “It is a testament to our excellent financial standing and strong fundamentals, which allow us to significantly step-up support for partner counties and the global development agenda.” According to S&P Global, the fund has an “extremely strong financial risk profile,” which anchors it in a “very strong” liquidity position and geographical diversification. The report added that the financing instrument is benefiting from adequate shareholder commitment and support of its activities, with three countries holding 64 percent of shares, led by Saudi Arabia at 35.7 percent at year-end 2022. “We consider the OPEC Fund has executed an ambitious growth agenda over 2022-2023, with the loan book expanding almost 12 percent on average, and we believe the institution can sustain similar growth rates through 2024-2026,” stated S&P Global in the report. The credit rating agency further pointed out that the intergovernmental fund has now established capital market access via benchmark and commercial issuances and significant capacity to support the step-up in lending activity. “We view positively the OPEC Fund’s entry into the public funding markets. The fund came to market in January 2023 with a three-year fixed-rate, benchmark-sized sustainability bond, raising $1 billion in its debut issuance,” said S&P Global. It added: “We assess this transaction to be sufficient to finance the OPEC Fund’s lending agenda for the next 18 months while also replenishing the liquidity reserves.” Since its establishment in 1976, the intergovernmental development finance institution has disbursed over $24 billion in over 125 countries, supporting the delivery of the global sustainable development agenda and addressing global challenges which include climate change and food security. Earlier this year, it announced the approval of more than $440 million in new development financing, bringing the total approved loan amount to $600 million for 18 projects in the final quarter of 2023.